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Lebanon's Economy Shrinks Under Burden of Syrian Crisis

Traditionally bolstered by its larger and more economically diverse neighbor, Lebanon’s economy has felt the sting of the war raging in Syria.
People walk past empty restaurants in downtown Beirut November 20, 2012. In addition to tumbling exports, Lebanon's tourist industry has declined by as much as 15 percent. Most Gulf countries warned their citizens this year not to visit Lebanon after clashes erupted between supporters and opponents of the Syrian uprising. Lebanon has also lost most of the 600,000 Arab tourists who usually drive into Lebanon through Syria each year. To match Reuters Summit MIDEAST-SUMMIT/LEBANON-SYRIA  REUTERS/Mohamed Azakir
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For the second year in a row, the Lebanese economy is suffering from a decline in the rate of growth. At no point in the last two years has GDP growth exceeded 1.5% [per annum].

This poses a grave challenge of far-reaching importance. Unless held in check by decisive measures and sound policy, it might shatter the fundamental components of Lebanon's economy and its social fabric. Perhaps the primary reason for this emerging recession is the effect of the Syrian revolution and the consequent incitement of conflicts which have spilled over into the Lebanese interior. It has exacerbated the paralysis of Lebanon's state institutions, deepened the barriers between its citizens, and set its urban neighborhoods ablaze.

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